Ether (ETH), the world’s second-largest cryptocurrency by market capitalization, has reclaimed the crucial $3,000 price point after a brief dip. This bullish move comes amidst growing anticipation for the approval of spot Ether exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).
Regaining Momentum
ETH currently trades at $3,060, reflecting a 1.74% increase over the past day. The digital asset’s market cap sits at $367 billion, with a significant 55.42% jump in trading volume to $16.54 billion. This price recovery follows a drop to $2,830, showcasing increased buying pressure.
Technical Analysis
Analysts are closely watching for a potential breakout above $3,100. However, the recent decline in Bitcoin (BTC) – the leading cryptocurrency – below $60,000 has impacted ETH’s price. Over the past week and month, ETH has fallen by 11.94% and 17.13% respectively, despite maintaining a 64.02% gain year-to-date.
Liquidation Frenzy
Data from CoinGlass reveals significant liquidations in both the long and short positions for ETH within the last 24 hours. Notably, $29.61 million in long positions were liquidated, alongside $28.86 million in shorts. This suggests that the unexpected price surge caught some short sellers off guard.
Long-Term Optimism
The sizable long positions – compared to shorts – indicate investor confidence in ETH’s long-term prospects. Additionally, the amount of ETH held on exchanges has decreased to 10.189%, while BTC’s exchange reserves have risen to 15.086%. This trend signifies a growing institutional interest in Ethereum.
Spot ETF Awaits SEC Nod
The crypto market eagerly awaits the SEC’s decision on spot Ether ETFs. Earlier this year, the commission approved 19b-4 applications from major asset managers like VanEck, BlackRock, and Fidelity. However, the final S-1 filing approvals are still pending, preventing these products from launching.
Also Read: Spot Ethereum ETF Approval 90% Likely By July 15th: Will ETH Price Soar Or Stay Low?
Potential Impact and Timeline
Industry experts predict a significant market reaction upon ETF approval, potentially happening as early as July 8th, according to The ETF Store President Nate Geraci. Analysts anticipate a potential inflow of over $5 billion into ETH ETFs within the first six months of launch, as predicted by crypto exchange Gemini.
This news comes as a positive sign for the Ethereum ecosystem. With the potential approval of spot ETFs and continued investor confidence, Ether’s price could see further upward momentum in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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